Pf with drawl

Did you withdraw PF before completion of 5 years of PF membership?

If yes it is better to transfer/deposit in new PF a/c with next employer and be eligible for many of the continued benefits from regular PF a/c.

For details visit nearest PF office or interact with PRO/APFC/RPFC and find contact details at:

www.epfindia.gov.in

Employer’s contribution + interest are taxed as “salary”.

Interest on the employee’s contribution is taxable as “other income”.

Employee’s own contribution (to the extent not claimed as a deduction earlier)

 is exempt from tax.

You may have to pay all tax concessions availed so far towards contribution recognized PF.

Total employer’s contribution+ interest which was not taxed earlier, shall be taxable as profits in lieu of salary.

PF withdrawal  is eligible for exemption from income tax:-

---If the employee has rendered continuous service with the employer for five years or more. If PF is transferred the years of continuous service with previous employer(s) is included to count 5year period.

---If before 5years the service is terminated due to ill health or discontinuance/closure of the employer’s business or reasons beyond the control of the employee

---In case employment is ended and accumulated PF balance is transferred to new individual PF account maintained by the new employer.